COA: OPAPP employees received P3.4 million in unauthorized bonuses in 2009

MANILA, Philippines - Employees and consultants of the Office of the Presidential Adviser on the Peace Process (OPAPP) under contracts of service received more than P3.4 million in unauthorized bonuses and allowances last year.

In a report, the Commission on Audit (COA) said such practice of granting additional benefits to non-regular personnel should stop as it results in unauthorized release of funds.

Records show that the OPAPP, which is under the Office of the President, granted consultants and contract of service employees additional compensation in the amount of P965,000 in 2009.

It also gave them mid-year bonuses and cash gifts in the amount of P922,428.50; clothing allowances and productivity incentives in the amount of P530,000; and yearend bonuses and cash gifts in the amount of P1,040,224.

Contract of service employees are different from contractual employees, who are directly hired by an office on a contractual basis.

Contract of service workers are employees of another company or agency hired for particular services or jobs like janitorial or security work.

“Management granted various allowances in the amount of P3,457,652.50 to consultants and employees hired under Contract of Service contrary to No. 8 of the terms and conditions of their contract; thereby resulting in unauthorized obligations and disbursements,” the COA report said.

State auditors said under the contract of service workers are not entitled to benefits enjoyed by regular OPAPP personnel.

The OPAPP during the Arroyo administration told the audit team they allowed the granting of the allowances to consultants and/or employees hired under contracts of service for humanitarian reasons.

“They are receiving meager compensation compared to the salary of contractual employees while doing equal work,” the OPAPP said.

The COA said OPAPP officials who authorized the practice may be held responsible for violating the terms and conditions of the contract.

“It was also emphasized by the (audit) team that the granting of any kind of allowance without proper authority would result to irregular expenditures, hence, must be stopped,” state auditors said.

The COA said OPAPP should stop extending various allowances without proper authority.

“(They must) require officials concerned who authorized the grant of such allowances to submit proper authority,” the COA said.

The practice has been stopped but pay for those on contracts of service has been upgraded, according to the present OPAPP administration.

The COA report also questioned why OPAPP officials and employees were given financial assistance for All Saints’ Day amounting to P674,000 last year without proper authority.

State auditors said Section 3.1A (3) of COA Circular No. 85.55A dated Sept. 8, 1985 and Section 57 of the General Provisions of the General have been violated.

COA Circular No. 85.55A described the payment of allowances and other forms of additional compensation without proper authority as “irregular expenditures”.

Section 57 of the General Provisions of the GAA of 2009, meanwhile, provides that “no official or employee of the national government shall be paid any personnel benefits charged against the appropriations in this Act, other appropriations laws or income of the government, unless specifically authorized by law.

“The payment of any unauthorized personnel benefit in violation of this section shall be null and void,” according to the GAA.

“The erring officials and employees shall be subject to disciplinary action under the provisions of Section 43, Chapter 5 and Section 80, Chapter 5, Book VI of EO 292, and to appropriate criminal action under existing penal laws.”